The Confident Indie Blog

Topic: Business expenses

June --
I am wondering which of your books I can purchase to answer the following sort of questions: I am a long time small biz owner, a good record keeper, have a good understanding of profit & loss, schedule c etc and have a great accounting software package, but nothing and nobody seems [...]

The following is an excerpt from two emails I received in May from from a sculptor who made a donation of his art to a college. I'll call him Sam Sculptor.
From Sam:
It seems that you are too busy to deal with me. However I am in the process of donating about a [...]

June --
When my inventory is entirely electronic (ebooks), I'm trying to figure out cost of goods sold. Any advice? My profession is e-publishing.
Kyle
Sequim, Washington
Hi Kyle,
Were you to sell hardcover books you'd have various costs, perhaps editor, proofreader, cover designer, printer.
You may have [...]

June --
I am a musician. I generally work as a studio player but, in the past year, I began touring small clubs under my own name. One of my major expenses on the road ended up being drinks. Just one or two at each venue, but the cost sure added up considering I [...]

Hi June-
Yours is the best indie tax site out there. Great Job.
My husband has a consulting business and we need to buy our own health insurance. Since health insurance has changed, I've found buying individual policies in our state PA may be a better way to go than family coverage. The [...]

Robert, a marketing consultant from Georgia, said that my post Reimbursements, reimbursements, reimbursements. What a drag. This is important, tho. was confusing. So, I'm going to try to clear things up by saying it a different way.
If you receive full reimbursement from a client for that client's expense that reimbursement is neither income [...]

Please see my embedded answers to questions from Tiffany.
-- June
I have just finished filing my taxes as a self-employed for the first time. I found your books early last year and the advice you gave helped me to feel more confident and saved me a heap of money (even if [...]

June --
Charitable donations of services...are they deductible? Thanks!!
Diane
Bookkeeper
Temple, TX
Diane --
No, they are not.
As a bookkeeper it is oh, so important that you understand this. Please read all the posts in this topic -- donated services or products.
-- June [...]

June --
Are there enough deductions being an independent contractor to not have to owe money at the end of the year and if so what are they? Last year I didn't have enough deductions from my business so I had to pay.
LAQUANZY
Architectural Designer
Knightdale, NC
Laquanzy --
[...]

June --
I have a business selling purses that I make. I sell them online and and at crafts show. I do not drive, but my boyfriend is kind enough to drive to to all of my shows, and then hangs around and helps with set up, break down, and booth sitting. I do [...]

Hi June,
How would you categorize expenses a client incurs on behalf of their client in a service industry. If cost of sales, can this be created under general expenses or does it have to be added in cost of goods sold section?
All the best,
Caroline, CPA
www.finmanfinancial.com
Hello [...]

June --
I have a lot of expenses for having things printed for clients, buying stock photography and web templates etc. I have no idea what to categorize these things as and where to put them in my taxes.
Lisa
Graphic/Web Design
http://basildesignworks.com
Norristown, PA
Lisa --
If you [...]

June --
I am considering buying a used van from my brother who does not live with me. Are there restrictions for writing off the purchase price when the seller is a family member? Business use of vehicle will be at least 90%.
Thanks so much for all your help.
Polly
Marketing&PR-Photographer,Writer [...]

June --
I am paid a day rate for my services. I work in my Broker’s office about 70 miles from home, and commute back and forth every day. I am paid a mileage expense, but only on Monday and Friday. I am paid a daily rate (Monday thru Friday) for lodging, another for [...]

June --
I am a self employed designer. My wife works full time at a large corporation. We buy health insurance for the whole family through the plan at her job. Can I write off as an expense any part of that?
Thanks!
Dennis
Print Designer
Columbia, SC
Current tax law, [...]

Many independent professionals migrate to self-employment from the joys of hobbyland or from work as an employee. Caitlin Caterer came to her profession when her kids entered school and by turning her joy of cooking for friends into a profitable business. Eddie Electronic went from selling himself short while working for someone else [...]

Hi June,
I’ve have spent about 3 days trying to find the answer to my question. I just found your start-up costs site and thought I may as well ask you my question.
I have entered my home occupancy permit/business license fees, the DBA fee, the business specific insurance/bonding fees as my start [...]

Hello June.
I have a question about the timeline for reporting business expenses. For example, If I bought my computer I use for work more than a year ago, but haven’t started making any money until just this week (and therefore have had no income to report until now), may I still claim the [...]

June -- I loved your article on creatively expanding the category of my business. As an alterationist, everything about fashion/sewing is part of my business. How do I NOT limit myself with a category? Do you have a suggestion? The name of my biz is “The Clothing Doctor” again…thanks in advance for your [...]

June -- I made an online purchase of a computer for my business on Dec. 30, 2012. However, the retail vendor did not charge my account until Jan. 2, 2013. The computer arrived in mid-January. Can I use the deduction for 2012? Di graphic designer/copywriter Watertown, WI Hello Di, [...]

June -- My wife is a 1099 contractor to DOD. Her per diem was included on line 7 income. Her peers are deducting full per diem while I can only find IRS rules for 50% of meals. She does stay in hotel (pd by DOD) for her 2 month assignments. Which is right, 50% [...]

Hi June,
I have a question about labeling and grouping expenses. To give you a little background, I am a graphic designer (and recent art school graduate) that does book design, typography work, and font design.
First example:
I purchase lots of art and design books for research (which seems to be an [...]

Hi June, I have a question about labeling and grouping expenses. To give you a little background, I am a graphic designer (and recent art school graduate) that does book design, typography work, and font design. First example: I purchase lots of art and design books for research (which seems to be an [...]

Hi June, I have a new travel destination client for which I'm blogging about the restaurants and local activities, and initiating and replying to social media discussions. In order to do this job, I have to drive to the destination and sample different restaurants -- it's literally research for my job. What say you [...]

Hi June. Haven’t been on your site for awhile but didn’t see an obvious answer to this obvious question. How does the proposed healthcare law affect indies? I do some freelancing and also have a W2 job with no insurance benefits. So I have no insurance currently and haven’t for some time. Just pay [...]

June–as you know I have long been a fan of your site. Two questions for you. The first one is more complicated. I am a writer who covers a wide variety of topics, but food and entertaining are certainly included. Say I throw a dinner party for ten people–my first “formal” dinner [...]

HELLO INDIES! I FINISHED CLIENT WORK DUE ON THE OCTOBER 15 TAX DEADLINE. NOW I'M HERE TO CATCH UP ON ANSWERING SOME OF YOUR QUESTIONS. -- JUNE Hi June, I’ve got a tricky one for you. I have a bundle with my ISP that includes internet and TV services. I don’t use TV [...]

June --
Question re: your list of 100+ Business Expenses To Help Reduce Your Taxes
under #31 you have a bullet "Performances."
I am a graphic designer doing mostly print work.
Would I be able to expense performances such as Broadway shows? Movies?
Thanks!
Dennis
Dennis@CraigheadDesign.com
St., Columbia SC
[...]

Hi June,
I intend to hire a 1099 indie to help us in our sales activities. She wants to be reimbursed for her out of pocket expenses (travel, cell phone, insurance, car rental, etc.) separately in addition to her fees/commission.
She does not want us to show the expense reimbursement on her 1099.
[...]

June --
I noticed on the download I just received (quicken categories for the self-employed) that vitamins are listed as a deduction.
I am self-employed with a company that sells vitamins. I would love that this deduction is true because this would be a great selling point for all the business owners I [...]

I just purchased your book Self Employed Tax Solutions, and let me start by saying this is the first time I have written an email to an author. I’m only in the third chapter and am so happy about the …Dean Iodice

I read Self-employed Tax Solutions from cover to cover in about 3 days (I finished it today), and found it engaging and well written. That’s high praise for a book on taxes. I’ve read other tax books ……Paul Plamondon

I recently bought your book, and wanted to tell you what you already know – it’s terrific. So many great common-sense features. In addition to my “indie” business, I’ve also been a tax preparer for an…James M. Beidler

I purchased a couple of books re: self employment taxes. I like yours (Self-employed Tax Solutions) because it’s written in plain language. The JK Lasser book (Small Business Taxes) appears to be writ…Linda Gordon